Las Brisas project slowed but not sidetracked by lawsuit, board member says

CORPUS CHRISTI - Despite recent legal setbacks related to an air permit needed to break ground on the project, Las Brisas Energy Center officials are prepared to take their case to a higher court, if necessary, to build a petroleum coke power plant on the Corpus Christi Inner Harbor.

Travis County District Court Judge Stephen Yelenosky on Monday sent a letter noting his intention to send Las Brisas' air quality permit back to the state for more detailed review, a decision applauded by the plant's opponents as setting a major roadblock for the plant.

Las Brisas board member Rogers Herndon said Tuesday any rumor of the plant's demise is premature.

"We are still reviewing the letter, but it is safe to say that we do not agree with many elements of the intended ruling," he said. "We have a right to appeal to a higher court and will be considering our options."

Yelenosky has not yet issued the formal order. His letter offered parties the chance to make recommendations before he proceeds. Environmental Integrity Project attorney Ilan Levin said the process could take weeks.

Las Brisas applied for its air permit in May 2008 and received approval from the Texas Commission on Environmental Quality in January 2011. It also has a pending greenhouse gas permit application under review by the Environmental Protection Agency.

"We are disappointed in how difficult it has been to bring a project like Las Brisas to Corpus Christi and the state of Texas," Herndon said in an email. "While we are still evaluating the court's letter, we remain dedicated to bringing the Las Brisas Energy Center online as soon as possible."

Herndon confirmed Las Brisas CEO Kathleen Smith has been removed and placed on the board of directors but could not confirm why.

The company has yet to turn a shovel on the $3 billion,1,320-megawatt electricity plant that would be powered by burning petroleum coke produced in abundance by nearby refineries.

Herndon declined to say how much the project's private backers have invested through the years.

The Texas Commission on Environmental Quality approved the company's permit over the objections of the Environmental Protection Agency and against the recommendation of two administrative law judges.

The commission has said it followed its rules and applicable environmental standards while analyzing pollution models provided as part of the permitting process.

"The TCEQ maintains that the technical review and issuance of the air quality permit was conducted in accordance with all applicable state and federal regulations and requirements and is protective of public health," commission spokesman Terry Clawson said in a statement. "The TCEQ continues to review the details of the judge's letter and will review the order when issued to determine its course of action."

Clean energy advocates and environmental groups opposed the project from the start on the grounds it will emit toxic chemicals and tiny particles that make it hard for some people to breath and push Corpus Christiclose to federal clean air standards that, if violated, could make it hard for other industries to locate here.

Local opponents remain committed to keeping the plant from breaking ground.

"It's disappointing that the officers in charge of Las Brisas seem to disagree with Judge Yelenosky's assessment," said Jim Klein, chairman of the Clean Economy Coalition. "But we intend to continue fighting against Las Brisas to make sure it is not built."

In his letter to the attorneys representing Las Brisas and those representing environmental groups such as the Sierra Club and Clean Economy Coalition, Yelenosky sided with appeals regarding the agency's failure to require adequate technology to properly handle, store and transport the petroleum coke onto the site and the agency's failure to comply with the latest National Ambient Air Quality Standards.

"Here, the worst-case scenarios factually and legally were not modeled," Yelenosky wrote, leaving open the door for another hearing on whether to reverse or even remand the permit.

"To us, it feels like various opposing forces are losing sight of the big picture," he said. "We are proposing a project located in the industrial port complex to consume a locally produced by-product of the refining process, pet-coke. Instead of shipping this product to overseas economies where it will be consumed in a less environmentally favorable manner, we are proposing to consume it locally and in an environmentally responsible manner."

He said the plant will add thousands of jobs directly in building or supporting its operations and provide a sustainable source of electricity for the area.